You must register the loan originator with the Direct Lender’s Compliance Department prior to originating a loan in Florida.

Loan Originator Continuing Education

Next due August 31, 2008. Loan Originators must complete 14 hours of continuing education every two years. Go to www.financialstrategies.com/affiliate/8c812f and order the Book - Essentials of Florida 14hr Mortgage Education Course. You may also complete the online version, but Direct Lender recommends the book format.

Branch Licensing

Send check request to Direct Lender Compliance Department for $325.

Back to Top

Initial Disclosures

FLORIDA DECLARACIÓN DE ANTICOERCIÓN

FLORIDA FAIR LENDING ACT NOTICE

Florida Hazard Insurance Notice of Anti-Coercion

Florida Lender's Disclosure

Florida Lock-In Agreement

Florida Mortgage Brokerage Contract Addendum

FLORIDA NOTICE TO PURCHASER-MORTGAGOR

FLORIDA PRE-APPLICATION DISCLOSURE

Florida Prepayment Fee Disclosure

Final Disclosures

Coming Soon

Back to Top

*Does not apply to purchases.
*Directly adopted from Section 32

Debt-to-Income Ratio Limitation

At settlement, the total of the borrower’s new housing expenses and consumer debts can not exceed 50% of the consumer’s monthly gross income, as verified by the credit application, financial statements, and the credit report.

Flipping

A lender, its affiliate or an assignee shall not refinance a loan to the same borrower within the first 18 months of the loan when the refinancing does not create a reasonable benefit to the borrower, considering the terms of both the new and the refinanced loans, the costs of the new loan, and all the borrower’s circumstances.

Back to Top

Florida allows a maximum of 36 months, or the number of months of the introductory fixed-rate term, whichever is less. The calculation will not exceed six months of interest on the pre-paid amount that is in excess of 20.00% of the original loan amount. Florida law directs that if a mortgage note is accelerated due to the borrower’s default, no PPP may be imposed. If a pre-payment penalty provision exists, Florida requires that a PPP disclosure is given to the borrower in writing within the note. No separate disclosure is required.

Back to Top

Mortgage tax

The mortgage (intangible) tax of 20 cents per $100 and documentary stamps, figured at 35 cents per $100, are paid by the borrower. Because Florida is a mortgage tax state, mortgage taxes are required to be calculated and disclosed on the Good Faith Estimate.

Permitted Fees

Admin fees (as a lender only), application fees, appraisal fees, attorney fees, bona fide discount points, credit report fees, exact third-party costs for services actually rendered, flood certification fees, insurance premiums, late charges, origination fees, pre-payment penalties (as a lender only), processing fees (as a lender only), recording taxes and fees, title fees, and transfer & assumption fees. Only lenders may charge for admin fees, doc prep & review fees, lock-in fees, pre-payment penalties, processing fees, and underwriting fees.

Fees can only be collected after an agreement has been signed by the applicant(s). Application fees must bear a reasonable relationship to the expenses incurred. Application fees may not be based upon a percentage of the principal amount of the loan.

Prohibited Fees

No advance fees, commitment fees, deferral fees, modification fees, previously un-disclosed fees, referral fees, single-premium insurance products, unearned fees, and warehouse fees. Brokers are prohibited from charging admin fees, doc prep & review fees, lock-in fees, processing fees and underwriting fees.

Late Charge Fees

Florida law does not expressly authorize, prohibit nor regulate late fees. For first liens, Florida allows a lender to collect a customary 5% late payment fee of the delinquent installment principal and interest, which becomes payable after 15 days of the installment due date on first liens. For subordinated liens, the customary 5% late payment fee of the delinquent installment principal and interest becomes payable after 10 days of the installment due date.

Back to Top

Funding Settlement

Wet State

Borrower Signing Requirements

Florida law honors homestead rights. Florida is not a community property state. Florida has abolished dower and curtsy laws. In the event that one spouse is not a borrower on the loan, and not on the title, both spouses are required to sign the mortgage, the Notice of Right to Cancel disclosure, and the Truth In Lending disclosure, because of the automatic homestead rights that each spouse has. A warranty deed is not acceptable to remove spousal rights because it does not waive homestead rights. Note that the title company may waive the non-titled spouse signature requirement for a non-homesteaded property.

Closing Customs

Customarily, title companies supervise closings in Florida, where the majority of title agents are attorneys. Conveyance is typically executed with a Warranty Deed. Two witnesses are required on any document that conveys interest in a property. The encumbrance is usually a mortgage.

Real Estate Taxes

Taxes are due November 1st.
Taxes are delinquent on April 1st. For purchase transactions, calculate taxes at 1.5% of the sales price. For refinance transactions, use the last annual property tax assessment.

Back to Top

Advertising Record Retention

Licensees must maintain samples of all advertisements, including commercial scripts of radio and television broadcasts, for two years after usage, publication or broadcast.

Advertising Restrictions

Florida law prohibits the use of fax machines to transmit unsolicited advertising material; advertising that an applicant will have unlimited access to credit without disclosing the limitations to the availability of credit; advertising a mortgage loan at any expressed interest rate, unless the advertisement specifically states that the rate could change or may be unavailable at the time of commitment or closing; advertising mortgage loans or quoting rates, points or other terms, if the lender is not able to make those terms available to a reasonable number of qualified applicants; or falsely advertising or misusing names indicating a federal agency.

Advertising Representation

Coming Soon

Telemarketing

Adhere to the federal Do Not Call Registry provisions at all times. Do not set up or use automated voice dialers, pre-recorded messages, or automated “blast faxes” machines. Faxes and e-mails may not be sent to any person or company for any reason, unless there is AN ESTABLISHED EXISTING BUSINESS RELATIONSHIP.

Door-to-Door Marketing

A lender can not make any loan at the residence of the borrower, without an appointment, or an expressed invitation.

Back to Top

Disclaimer:
This information is tailored for DirectLender. It is deemed reliable but not guaranteed. It is not intended as legal advice, and should not be relied upon as such. The laws, policies, and references cited change periodically.